Pitch Book

Fact Sheet

Mechanical Trading System®

StoneWater's Mechanical Trading System® has been designed using mathematical momentum sequences in the market. Our focus is on the probabilities as opposed to single market events, making it a quantitative, repeatable investment process. Our natural principles allow our Mechanical Trading System® to be process focused whereby anticipating the momentum using price action and reaction, volume and volatility in order to interpret the copious amounts of statistical data.

 

We are confident that the formulas and strategies embedded within our Mechanical Trading System® will stand the test of time. Our safety is in the numbers, probabilities and statistical data that emphasize so. We have the confidence and benefit of having done the research & development. We also understand there will be periods of lost momentum, however these will always be over turned.

 

StoneWater Capital Management understands like all things in life there are ups and downs. It is how you react to these periods that determine the outcome.

Our Asset Classes

Carefully chosen due to their high liquidity, StoneWater has crafted a portfolio of asset's to work in synchronization with our Mechanical Trading System® providing our clients with consistent, transparent and secure returns.

Currencies 33%

(EUR, USD, AUD, JPY)

Precious Metals 33%

(Gold, Silver)

Energy 30%

(Crude Oil)

Soft Commodities

(Corn, Sugar, Soy Beans)

Risk Management

Our strategies aim to generate superior risk-adjusted returns whilst maintaining a proactive and rigorous approach to risk management. Our risk management practices, integrated into our daily process, are based on both quantitative and qualitative analyses implemented at both the individual position and total portfolio levels.

Risk Sensitivity Analysis

Money management and risk formulas have been embedded into our Mechanical Trading System®. Our key focus is money and risk management. We dictate our position sizes based on our point of entry and stop loss. This automatically allows our Mechanical Trading System® to withdraw from positions before it exceeds the maximum exposed risk (subject to liquidity). 

 

Based on the mathematical formulas that have been tested using over 120 years of historical data it would take 21 maximum risk (2.5%) consecutive losses to lose a total of 41.24% of capital. This has never been evident in all historical and live years traded. We pride ourselves on accuracy.

Our Track Record

The financial year 2015/16 was the most volatile period for international markets since the global financial crisis. Such trading conditions were always going to prove a challenge, especially with a new portfolio that had been tested thoroughly and traded privately, but not exposed to the mental challenges that come with managing a live portfolio, on behalf of clients. We set a reasonable target of 10% p.A. Gross return and achieved a slightly higher result (+11.30% (excluding fees)). We are satisfied by our performance, although we believe there is room for improvement. The return is based on an account with $100,000 starting balance. Maximum risk per trade is 2%

PAST PERFORMANCE IS NO INDICATION OF FUTURE PERFORMANCE

Benefits of Our Mechanical Trading System®
  • Provides consistent rules and processes which are repeatable, creating structure that helps to manage your capital

  • Probability based rather than focusing on single market events

  • Process focused rather than outcome focused

  • Extensive research and the positive statistical edge

  • Provides a framework to run our MDA efficiently

  • Combination of strategies and formulas

  • Ability to measure the consistency, objectivity, and trade execution ability

Copyright © 2016 | StoneWater Capital Management ABN 62 612 374 688 |               |                 

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